KMH Capital daily forecast for energies

Confirmation of a bottom with a range violation on 04/22/13 @ 100.34. Confirmation of a bottom with a close violation on 04/22/13 @ 100.39. Upside Targets = 102.57 – 103.74.

June Brent Crude reversed course on Wednesday as it made new highs for the week and traded to its highest level in 7 trading sessions in what was a relatively tight trading range as the market has now risen over $5 from last week’s current 2013 low print.

Look for this rally to fizzle as it approaches the $104 mark as old support should become new resistance following the massive technical damage the market has suffered during the previous 3 weeks of trading.

Projected Daily Range: 1.75

Projected Weekly Range: 6.59

Projected Monthly Range: 6.72

WTI Crude Oil (June ‘13):

Short Term Trend is bearish.

Confirmation of a bottom with a range violation on 04/22/13 @ 89.07. Confirmation of a bottom with a close violation on 04/22/13 @ 89.19. Upside Target = 90.33 – 93.32.

New highs made on the current move Wednesday @ 91.98.

June WTI Crude Oil was able to extend its gains higher on Wednesday as it violated the previous week’s high and closed at its highest level in 8 trading sessions.

Expect for some following through buying on Thursday to push the market higher towards the weekly upside objective at $92.96.

Projected Daily Range: 2.01

Projected Weekly Range: 5.27

Projected Monthly Range: 7.11

Natural Gas (May ‘13):

Short Term Trend is bullish.

Confirmation of a top with a range violation on 04/24/13 @ 4.171 Confirmation of a top with a close violation on 04/24/13 @ 4.166. Downside Targets = 3.988 – 3.875.

May Natural Gas dropped lower again on Wednesday following an early morning rally that fizzled throughout most of the day as the market made new 5 day lows as it draws closer to the 20-day moving average.

As the contract edges closer to expiration there should be more liquidation heading into Thursday’s storage number before the volatility ramps up.

Note that a larger than expected increase in storage could push both the May and June contracts below their previous week’s low.